7 days to find buyer/repay mortgage

[cherrytree123]

Hello I would be grateful for some advice.

 

I spoke to my mortgage lender this morning and if I dont find a buyer or settle my mortgage debt they will commence repossession proceedings in 7 days time.

 

My mortgage with Acenden ended last September. I was unable to repay it, so I put the flat on the market, found a buyer very quickly but unfortunately just before exchange of contracts my partner had a stroke, forcing me to stop the sale. Some time later I put my property back on the market again found a buyer very quickly, but she pulled out just before we exchanged. That was a couple of weeks ago.

 

If I ended up in court would I have a strong chance of overturning the eviction. My property is back on the market. I am still continuing to pay my mortgage, having never missed a payment.

[BazzaS]

Hello I would be grateful for some advice.

 

I spoke to my mortgage lender this morning and if I dont find a buyer or settle my mortgage debt they will commence repossession proceedings in 7 days time.

 

My mortgage with Acenden ended last September. I was unable to repay it, so I put the flat on the market, found a buyer very quickly but unfortunately just before exchange of contracts my partner had a stroke, forcing me to stop the sale. Some time later I put my property back on the market again found a buyer very quickly, but she pulled out just before we exchanged. That was a couple of weeks ago.

 

If I ended up in court would I have a strong chance of overturning the eviction. My property is back on the market. I am still continuing to pay my mortgage, having never missed a payment.

 

"My mortgage with Acenden ended last September. I was unable to repay it"

"I am still continuing to pay my mortgage, having never missed a payment"

 

If your mortgage "ended" without you being able to repay it, and you had never missed a payment : this suggests it was an endowment mortgage? (As it would have been paid off if a capital repayment mortgage and "you'd never missed a payment"

 

If so: the sum is due at the end of the term : did you have the endowment with the same firm? Had they warned you of a shortfall?

 

""I am still continuing to pay my mortgage, having never missed a payment" : you may have been offering them an interest payment - and them not refusing it, but unless you agreed an extension in term with them : do you actually have an ongoing mortgage? Or just the debt from your previous mortgage?

 

Why weren't you able to repay it last September?

How much is owed and how much can you pay?

Did they warn you of a risk of a shortfall and when?

 

If they warned you of a risk of a shortfall and haven't failed in their obligations to you, only you failed in your obligation to them (to repay the mortgage at the end of its term) : you may find it difficult to oppose repossession unless you have a buyer waiting in the wings (where a suspended possession order might give you a chance to complete THAT sale).

 

Did you get a letter warning of a risk of endowment shortfall?. If so, when?

There are time limits on claims for mis-selling.

 

http://www.theguardian.com/money/2015/feb/19/how-deal-with-endowment-mortgage-not-cover-loan

 

http://www.theguardian.com/money/2013/oct/09/what-do-endowment-shortfall

[cherrytree123]

Bassaz

 

Yes it was an endowment mortgage and I was aware of the shortfall having received many warning letters. It was a remortgage I had taken 7 years earlier thats why the figure is so high. I did have an insurance policy in place, a big shortfall on it and i ended up cashing it in. I am owing £121.000. My property is worth 300,00 so I have a lot of equity in it.

 

This has come completely out of the blue. Last Feb I did a financial statement with them which expires the first of September. In their confirmation letter they state "please call us once the above arrangement has ended as we will not be able to move you on to any other arrangement solution until we have reassessed your financial situation.". No hint of repossession before now.

[unclebulgaria67]

Can you take out a replacement mortgage ? Do you have to sell the house ? Just wondering what finance options are available you. Speak to an independent mortgage brokers ?

 

Acenden seem to like repossessions, perhaps as a way to make money. If you are still paying them interest on the amount owed, this appears to be the only explanation.

[cherrytree123]

Hi unclebulgaria67

 

Because of my age my options are very limited, I am in my sixties and my partner is in his seventies. As far as I can see selling seems to be the only option available.

[Ell-enn]

Have you actually received court papers for possession ?

[cherrytree123]

Have you actually received court papers for possession ?

 

Hi Ellenn

 

Thank you for replying. Not yet. I spoke to Acenden on Friday 21/8 and they said they would commence repossession proceedings the following Friday 28/8 if there is no buyer in the pipeline/or I was unable to pay the outstanding balance.

 

Last Feb I did a financial statement with them over the phone (they dont use emails) and that expires on Sept 1st.

[Ell-enn]

OK, in that case you still have a fair bit of time to try and get a buyer for the property. If they apply to the court on 28th Aug, it's unlikely they will get a hearing date much before the end of September - if you haven't sold the property by then you will have the opportunity of attending the repossession hearing and asking for more time to sell.

[cherrytree123]

OK, in that case you still have a fair bit of time to try and get a buyer for the property. If they apply to the court on 28th Aug, it's unlikely they will get a hearing date much before the end of September - if you haven't sold the property by then you will have the opportunity of attending the repossession hearing and asking for more time to sell.

 

Thank you, I feel slightly less panic stricken now. Hopefully I will find a buyer and things will progress smoothly.

I will keep you up to date with future proceedings . It looks as if I might need some help with the N244 Form when the time comes. I understand that this form has to be handed in to the court 2 weeks before the hearing.

 

Thank you once again or your invaluable help.

[Ell-enn]

Hi, you won't need to enter an N244, if a court claim for possession does arrive there will be a defence form attached (N11M) which you complete and send to the court before the hearing - we can help you with that.

[cherrytree123]

Hi, you won't need to enter an N244, if a court claim for possession does arrive there will be a defence form attached (N11M) which you complete and send to the court before the hearing - we can help you with that.

 

Thank you.

[theoldrouge]

As you are in your sixties and your partner in seventies

 

have you looked into lifetime mortgages (equity release)

 

Have you had a recent valuation of your property?

 

Would you be able to reduce the mortgage by a lump sum in order to qualify?

[cherrytree123]

theoldrouge

 

Yes I looked into equity release, but I didn't qualify for it. I contacted a number of brokers, the most they could offer me was £70,000, which still left a shortfall.

 

I have had a recent valuation, but a shortfall would still exist. Yes I would qualify if I was to pay a lump sum, but I am not in a postion to pay a lump sum.

[Lea_HTH]

The Mortgage Rescue Scheme is probably your best option.

 

If your mortgage term is at an end, the court only has jurisdiction to award possession to the mortgagee - the contract is over. The courts powers extend only so far as if the mortgage is still in term. Sorry to be the bearer of bad news, but there is no point in you labouring under a misapprehension. The court could award a 56 day order (at most) in order to allow you time to sell, but would only consider an extension of that if you were at the exchange of contracts stage...56 days is not a long time in which to sell.

 

Therefore, as I began with, the better option is the mortgage rescue scheme...with you and your husband being pensioners, this might be the only realistic option for you both to stay in your home. Given you have substantial equity, the MRS would not even need to buy the whole property, they could just buy a share and rent it back to you. You should contact your local authority (if your mortgagee has followed the pre action protocol, they should have notified the local authority anyway), and ask them for information, and an application pack, for the MRS.

[Lea_HTH]

The Mortgage Rescue Scheme is probably your best option.

 

If your mortgage term is at an end, the court only has jurisdiction to award possession to the mortgagee - the contract is over. The courts powers extend only so far as if the mortgage is still in term. Sorry to be the bearer of bad news, but there is no point in you labouring under a misapprehension. The court could award a 56 day order (at most) in order to allow you time to sell, but would only consider an extension of that if you were at the exchange of contracts stage...56 days is not a long time in which to sell.

 

Therefore, as I began with, the better option is the mortgage rescue scheme...with you and your husband being pensioners, this might be the only realistic option for you both to stay in your home. Given you have substantial equity, the MRS would not even need to buy the whole property, they could just buy a share and rent it back to you. You should contact your local authority (if your mortgagee has followed the pre action protocol, they should have notified the local authority anyway), and ask them for information, and an application pack, for the MRS.

 

Scrub the above...MRS no longer available since March (shows when I last did duty work!).

[lindyhop]

Hi Lea_HTH

 

reading through this thread with interest. if MRS now defunct, is there an alternative?

[citizenB]

https://www.gov.uk/mortgage-rescue-scheme

 

This is the only information I can find, lindyhop

[Lea_HTH]

Hi Lea_HTH

 

reading through this thread with interest. if MRS now defunct, is there an alternative?

 

No. Unless you are in Scotland or Wales.

 

Worse, SMI is changing from a 13 week wait following applying for benefits to a 39 week wait...and from 2018 it'll be a loan. Silly, unnecessary changes that mean homeowners who fall into difficulties due to job loss are far worse off than renters.

[mercyblue]

No. Unless you are in Scotland or Wales.

 

Worse, SMI is changing from a 13 week wait following applying for benefits to a 39 week wait...and from 2018 it'll be a loan. Silly, unnecessary changes that mean homeowners who fall into difficulties due to job loss are far worse off than renters.

 

Indeed a loan to pay another loan insanity! How is anybody able to turn around that ever decreasing circle?